The NWIA MLS has recently made some rule changes, and we offer a few rule reminders that are important for all members to know and use.
Your MLS Committee and Board of Directors have been hard at work for months on the topic of how to best communicate MLS listings that have accepted offers in which the seller wishes to continue to show the property. After many hours of deliberation, the Board, based on the recommendation of the MLS Committee, has made the decision to eliminate Active Contingent (AC) status. It will be replaced with a new status titled “Pending Continue to Show”.
Why the change?
AC status seemed to be confusing to both the REALTOR members and the public. The terminology “Active Contingent” implies that the property is available or “active” when in fact it is only available for back-up offers. Properties in this status were also showing up on some of the third-party sites as available for purchase which is misleading. The public generally understands the meaning of the word “pending” and we feel the change will add transparency to our industry. “Active Contingent” listings were also skewing days on market which was painting an inaccurate picture of our market. Moving forward both “Active” and “Pending to Continue to Show” listings will be syndicated to the third-party sites.
Effective immediately when a seller accepts an offer, it is mandatory to place the listing in one the following statuses:
- Pending to Continue To Show: Place the property in this status only if the seller wishes to continue to show the property. If at any time during the escrow process the seller expresses that they no longer wish to show the property, then the status should be changed to “Pending”. Examples of a seller no longer wishing to show the property include, buyers removing inspection and financing contingencies or a seller no longer desiring to do the prep work that a showing often entails.
- Pending No Showings: The seller has stated that they no longer wish to show their home since they have an accepted offer.
Regardless of the status, the seller is free to accept back up offers any time up until the time of closing. Code of Ethics and license law also require that all offers submitted be presented to the seller unless the seller waives the right to do so in writing.
What about existing AC status listings?
Depending on whether or not your sellers want to continue to show the home or pass on any further showings will dictate which status is best suited for the listing. Again, they wish to continue to show, move the property into “Pending Continue to Show”. If they no longer wish to open their home, then simply change it to “Pending No Showings”. All AC listngs must be changed to a pending status no later than March 13. Board staff is more than happy to help you make these changes if needed.
Subject to the Sale Offers
There continues to be confusion on how sellers who have accepted subject to the sale of the buyer’s property shall be marketed. If the accepted offer has a first right of refusal period, then the property shall remain “Active” with the first right of refusal time frame fully disclosed in the MLS. There is a built in feature within Paragon in which administration must add “Subject to the Sale” with the appropriate first right of refusal period.
Room Descriptions and Room Floors
Please, please, please add your room descriptions (living, dining, kitchen, bedroom, etc…) and the floor in which the room is located when entering your listings. Buyers and agents alike want this information and it also increases the likelihood that listings will be shown to prospective buyers. Room measurements are optional.
NAR Clear Cooperation Rule
As previously announced NAR has implemented the Clear Cooperation Rule in which a listing must be entered into the MLS the next business day following an executed listing agreement.
The rule states: “Within one (1) business day of marketing a property to the public, the listing broker must submit the listing to the MLS for cooperation…
This new NAR rule doesn’t really change the ways in which our board disseminates listings as we have been administering our listings in the following manner for quite some time:
- Listing Procedure: Listings of real or personal property of the following types, which are listed for sale subject to a real estate broker’s license, located within the service area of the Board of REALTORS®, taken by Participants on Exclusive right to sell listing forms and Exclusive Agency listing forms, shall be delivered to Multiple Listing Service by 10:00 am CST the second board office business day after all necessary signatures of seller(s) have been obtained.
- Exception: If a listing is advertised on any other *media form, listing must be entered into the MLS by 10:00 am CST the next Board Office Business Day, along with a copy of the signed listing agreement. *Media forms include, but are not limited to all social media, signs in yards, print ads.
To make sure we are compliant with the MLS cooperation time frames, the following penalties will be assessed when a listing is not entered into the MLS within the proper time frame.
- 1st Offense $500
- 2nd Offense $1000
- 3rd and all future Offenses $1500
The fines will be billed to broker who can make the determination on how to handle within their own office. We do understand that there may be the very infrequent occasion in which a violation takes place. In that circumstance, a broker can attend the Board of Directors meeting and explain the situation. It will be up to the members of the Board of Directors to determine if a fine should be waived.
This rule does not apply to Open Listings as they are not allowed in our MLS.
To fully comply with the NAR rule, Private Listings shall not be advertised. This includes all print, digital, and social media advertising as well as yard signs.
Other MLS Violations
The fee structure for other MLS violations and mistakes remains the same. The board office will notify the offending agent of the discrepancy and the agent will have 24 hours to remedy the situation. If the listing is not corrected within 24 hours, a $50 fine to the broker will be assessed.
Questions? Need More Info?
All of our MLS rules exist in Paragon. Look in the upper right corner for “MLS Documents” in white print. All the rules live there for your download and printing needs.